Capital and Funding
The Group’s capital management is focused on adequacy, efficiency and flexibility whilst maintaining balance sheet strength to support the overall Group strategy. The Group’s capital management key objectives are to optimise the returns to shareholders, support the Group’s growth and ensure that capital levels appropriately cover the Group’s risks. This involves ensuring an efficient mix of Tier 1 and Tier 2 capital, maintaining sufficient capital resources versus regulatory requirements and meeting rating agency expectations.
The Group maintains a well-diversified wholesale funding portfolio by accessing a range of funding across senior, subordinated and secured debt markets, as well as the domestic retail hybrid market. The prudent mix across maturity profiles, geographies and investors funds the Group’s business activity and growth. The Group achieves its funding objectives through a diverse range of funding programmes enabling access to the major wholesale funding markets.
NAB issues covered bonds backed by Australian residential mortgages. The programme is regularly monitored.
Securitisation is an alternative source of funding used by the Group to assist in achieving the overall funding objectives. The Group issues residential backed mortgage securities secured over high quality Australian residential mortgage loans.
Monthly investor reports for covered bonds and residential backed mortgage securities are available here.